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This site is for informational purposes only and is not intended as tax or legal advice. Please consult your tax and legal professionals regarding your individual situation. The opinions expressed and materials provided are for general information purposes only and do not constitute an offer to buy or sell any security or investment, nor should they be considered a solicitation for the purchase or sale of any security.
There are material risks associated with investing in private placements, Delaware Statutory Trusts (“DSTs”), and real estate securities, including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition (including the risk of new supply coming to market and softening rental rates), general risks of owning and operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, and long holding periods. Investors should carefully read the Private Placement Memorandum (PPM) before investing, paying special attention to the risk section.
There are also risks associated with a 1031 exchange. A 1031 exchange has an identification period of 45 days from the sale of the relinquished property to identify a potential replacement property or properties, depending on the value of the previously sold property. To defer all capital gains tax, you must reinvest the entire net proceeds from the sale of the relinquished property into the replacement property and acquire debt on the new property that is equal to or greater than the debt on the property that was sold.
DST 1031 properties are available only to accredited investors (typically those with a net worth of $1 million excluding a primary residence, or income of $200,000 individually or $300,000 jointly for the last three years) and accredited entities. If you are unsure whether you qualify as an accredited investor or entity, please verify with your CPA and attorney.
The rules and regulations of the Qualified Opportunity Zone (QOZ) Program are complex, and compliance with the program involves significant challenges. These include unpredictable appreciation, development risks, illiquidity for up to ten or more years, availability and cost of construction and development financing, uncertainty related to development and redevelopment of real estate, and regulatory and interpretive uncertainties that may impact future risks.
There are risks associated with the Deferred Sales Trust™ strategy, including but not limited to the non-deferral of excess accelerated depreciation, less liquidity than some other strategies, and the fact that the capital gain offset on the sale of a personal residence (up to $250,000 per spouse) cannot be taken upfront. Instead, it becomes a balloon credit against taxes owed, if any, at the end of the investment contract. Deferred Sales Trust™ strategies may also involve higher setup fees than other investment strategies.
Securities are offered through Concorde Investment Services, LLC (CIS), Member FINRA/SIPC. DST.com is independent of CIS.
